Peggy Shannon, born Winona Sammon on January 10, 1907, in Pine Bluff, Arkansas, began her career in show business as a child, attending Catholic school where she befriended future actress Madge Evans.
While visiting her aunt in New York, 16-year-old Peggy was discovered by renowned producer Florenz Ziegfeld Jr., who hired her as a chorus girl in The Ziegfeld Follies.